Ian Marsh, a Director of investments at Brighton-based financial adviser Peel Townsend Financial Services, warns that it is very irresponsible of people not to have Life Cover and/or Critical Illness Insurance as he maintains that life has 2 main dangers – either being alive too long and passing away too early.  “Its imperative to have some insurance in place – especially if you have got young children,” he states. “These days you must construct your own little welfare state because nobody else is can do it for you.”

Justin Peters at LifeSearch says now is the right time to buy such plans as there are some very reasonable premiums about owing to the fierce competition for business within the market. “The cost of life insurance has fallen – dropping about forty per cent in four years. It has never been so cheap,” he states. “The critical illness insurance market paid out on 85 per cent of claims in 2006 – increasing from eighty per cent  the during the last year.”

Be aware of what insurance cover you already have before you take out any more.  Do you already have investment policies or does your company pension plan give you any cover?

The best way to calculate how much insurance you will need is to work out how much you would need to have the same level of living over a year and then times it by 24 years.  The minimum amount required should clear all outstanding debts and provide a lump sum for all your dependants.

Make sure you get a really good deal

When making a decision on your insurance policy it is very important to read the manual that many insurance companies have of the conditions and illnesses that they deal with. It will catalog everything and should be strsightforward and simple to grasp.  You will also want to review the documentation of the crutial features of the policy which will take account of all exclusions and benefits.

When people take on the responsibility of a homeowner loan they are usually advised to take out critical illness insurance but should research the market and not just take the first insurance policy proposed.

If you start paying these premiums when you are younger they are a great deal cheaper, distinctly different to leaving it until you are older, when cover increases quite markedly.

Insurance payments can also be lowered by quitting smoking cigarettes.  April Holmes, manager of protection insurance at Thisismoney says ” as well as giving a longer and healthier quality of life, giving up smoking can save people a vast amount of money.”

If you quit smoking you can knock as much as a 1/3rd off life, critical illness cover and income protection insurance premiums because the evidence that we now have proves that smoking can trigger serious illness and intensifies any other existing health conditions.

If your circumstances change you may have to alter your policy.

Under no circumstances think that once you have bought your insurance policy that you can just carry on with your life and forget about it. constantly be very aware of the insurance policy you have and ensure that, should your circumstances alter, or, is about to alter your policy must accommodate these revisions.  Perceivable examples are moving jobs, or or maybe you would like to have more children; often think about everything that may put up your living expenses and would need to be covered if you cannot work.

Bookmark It

Hide Sites